Digitalization is an essential element for the development strategy of Small and Medium-sized Enterprises (SMEs) and a key factor for their Operational Performance. This study develops an extended TOE (Technology-Organization-Environment) model, incorporating the Individual and Economic factors (TOE-IE), aiming to identify and quantify the causal drivers of technology application in the firm and its subsequent impact. The research was designed as a quantitative and confirmatory study, and the Partial Least Squares Structural Equation Modeling (PLS-SEM) technique was applied to analyze data from a sample of 270 SMEs in the Extremadura region (Spain) in 2024. The results reveal that Digitalization serves as a full mediator and a robust predictor of Operational Performance, with the Individual Factor (leadership, training, and digital talent) being the most robust driver of adoption. Critically, the Economic and Technological Factors were found to be non-significant, suggesting that public support policies have managed to mitigate the financial barrier, leaving the leader's will and staff capabilities as the main bottleneck. It is concluded that the essential strategic resource for digital transformation is human and attitudinal capital, not financial capital. This study is highly relevant for consultants, SME managers, and public policymakers, as it justifies the reorientation of investments from capital subsidies towards leadership development and digital upskilling programs. This study contributes to the field of sustainable technology by demonstrating that, within the framework of current economic policies, the primary driver of digital transformation in SMEs is not financial capital but the strategic leadership of the manager.
Vecino et al. (Sun,) studied this question.